Country Presentation - Indonesia

Placement and Protection of Indonesian Overseas Workers

delivered by:

Sri Setiawati Directorate of Overseas Manpower Placement

Directorate General of Manpower Development Placement

The 5th ADBI-OECD-ILO Roundtable on Labour Migration in Asia Shanghai, 28 – 30 January 2015

MINISTRY OF MANPOWER OF THE REPUBLIC OF INDONESIA

The views expressed in this presentation are the views of the author and do not necessarily reflect the views or policies of the Asian Development Bank Institute (ADBI), the Asian Development Bank (ADB), its Board of Directors, or the governments they represent. ADBI does not guarantee the accuracy of the data included in this paper and accepts no responsibility for any consequences of their use. Terminology used may not necessarily be consistent with ADB official terms.

1. Introduction 2. Legal Basis 3. Placement Mechanism of IOWs 4. IOWs Profile 5. Challenges 6. Solutions

1. Introduction

STATISTIC S OF INDONESIAN WORKFORCE

<Elementary : 2,13 (27,99%) Junior High : 1,72 (22,60%) High School : 1,98 (26,01%) Vocational : 0,99 (13,01%) DIPLOMA : 0,25 (3,29%) UNDERGRADUATE : 0,54 (7,01%)

118,19 (66,90%) WORKFORCE

Working Age Population Age > 15th 176,66 Mill

<Elementary: 53,91 (45,61%) Junior High : 22,14 (18,73%) Senior High : 19,77 (16,73%) Vocational : 11,25 (9,52%) DIPLOMA : 3,11 (2,63%) UNDERGRADUATE: 8,01 (6,78%)

Non-WORKFORCE 58,47 (33,10%)

Farmer : 41,20 (36,52%) Industry : 14,21 (12,60%) Construction : 6,10 (5,41%) Commerce : 24,02 (21,29%) Transportation : 5,20 (4,61%) Finance : 2,78 (2,47%) Services : 17,37 (15,40%) Others : 1,92 (1,70%)

<Elementary: 55,51 (49,20%) Junior High : 20,29 (17,99%) Senior High : 17,20 (15,25%) Vocational : 9,43 (8,36%) DIPLOMA : 3,12 (2,77%) UNDERGRADUATE: 7,25 (6,43%)

Working 112,80 (93,68%)

Open Unemployment 7,61 (6,32%)

Full Employment (>34 Hr/wk)

77,25 (68,48%)

Half Unemployment 14,87 (41,83%)

Half Employmet (<34 Hr/wk)

35,55 (31,52%)

Part Time

20,68 (58,17%)

Resources: BPS, Official News Statistic November 2013

International Migration from Indonesia • The beginning of labour migration from Indonesia to Malaysia and

Saudi Arabia 1970

• Government policy on placement of migrant workers was introduced by the Ministry of Labour (domestic workers as temporary measures)

1980

• The Act of RI Number 39 Year 2004 on Placement and Protection of Indonesian Migrant Workers Abroad was enacted

2004

• The Government had ratified International Convention on Protection of All Migrant Workers and Members of their Families 2012

• The Parliament initiates the revision of Act of RI Number 39 Year 2004 to be in line with the related international conventions

2012

2007 Establishment of National Board on Placement and Protection of

Indonesian Overseas Workers

Push Factors and Destination Countries

1. Unemployment

2. Lack of Job

Opportunity

3. Difference in Global/Regional Economic Growth

4. Development of information and Transportation Technology

5. Right to Work Abroad

1. Malaysia 2. Singapore 3. Hong Kong,

China 4. Japan

5. Australia 6. Taipei,China 7. Republic of

Korea 8. Brunei

Darussalam

1. Saudi Arabia 5. UAE 2. Yemen 6. Bahrain 3. Kuwait 7. Oman 4. Jordania 8. Qatar

1. USA 2. European Union 3. UK

EUROPE

AND AMERICA

AFRICA

1. Egypt 2. South Africa 3. Libya

MIDDLE EAST

ASIA PACIFIC

2. Legal Basis 1. Act Number 13 Year 2003 concerning Manpower. 2. Law Number 39 Year 2004 on Placement and Protection of Indonesian Workers

Abroad. 3. Law Number 21 Year 2007 on the Crime Prevention of Trafficking in Persons. 4. Presidential Regulation. 81 Year 2006 on the Establishment of BNP2TKI. 5. Gov. Regulation Number 38 Year 2007 regarding the Division of Government Affairs

between the Government, Provincial Government and Regency / City. 6. Gov. Regulation Number 3 Year 2012 regarding the Protection of Indonesian Overseas

Workers 7. Gov. Regulation Number 4 Year 2013 concerning Procedure of Indonesian workers

Placement by Government. 8. Gov. Regulation Number 5 Year 2013 concerning Procedure of Assessment and

Establishment of Agencies and Private Employers 9. Gov. Regulation Number 33 Year 2013 concerning Labour Market Expanstion 10. Ministerial Decree 07/MEN/V/2010 about Indonesia Overseas Worker Insurance 11. Ministerial Decree Number 22 Year 2015 on the Implementation of the Placement

and Protection of migrant workers abroad. 12. Ministerial Decree 16/MEN/IX/2012 on Repatriation of Indonesian Worker Individually.

DISTRICT/CITY OFFICE

SKILL SERTIFICATION

PDT, & Signing LC

To COD

REPORT to INDONESIAN MISSION

3. Placement Mechanism of IOWs

INDONESIAN PRIVATE AGENCIES

MEDICAL

TRAINING

DOC PROCESS

21

PDT: Pre Departure Training LC : Labour Contract

KBRI/KJRI

• Job order/Demand letter • Legalization of WC Draft • Draft placement agreement

Medical & Psychological Test

Training

Competence certification

District/city Office Kab/Kota

Indonesian Agencies

• Working Visa

• Dissemination • Registration of candidates • Selection • Signing Placement

Agreement • Passport Recommendation

BNP2TKI

• Pre Departure Training & Working Contract Signing

• Insurance • e-KTKLN

Pre Employment Insurance

BNP2TKI Issuance Recruitment Permit

Indonesian recruitment agencies

CTKI

IMIGRATION PASPORT

Proposed Mechanism : One Roof Service

One Roof Service 9

IOWs Placement Institution

Government Act 39/2005, Article 94

Indonesia Private Agency

Internal Corporate Transfer

Professional Workers

Numbers of IOWs, 2010-2014

Source: Ministry of Manpower

Nu COD 2010 2011 2012 2013 2014

1 ASIA PASIFIC AND

AMERIKA

344.05 336.358 360.402 365.991 318.273

2 MIDDLE EAST 516.036 213.222 125.174 135.502 97.993

3 EUROPE AND AFRIKA

0 37.222 10.62 10.135 9.531

TOTAL 860.086 586.802 496.196 511.628 425.797

TAHUN 2011 2012 2013 2014

FORMAL 266.156 259.554 226.806 243.543

INFORMAL 320.272 236.639 284.822 182.254 Source: Ministry of Manpower

IOWs by Sector, 2011-2014

TAHUN 2011 2012 2013 2014

WOMEN 376.317 280.378 276.620 243512

MAN 210.111 215.815 235.008 182.285

Source: Ministry of Manpower

IOWs by Gender, 2011 - 2014

TAHUN 2011 2012 2013 2014

WOMEN 64% 57% 54% 57%

MAN 36% 43% 46% 43%

IOWs by Country of Destination, 2014

COUNTRIES NUMBER OF IOWs

Malaysia 1,309,480

Singapore 125,000

Brunei Darussalam 75,552

Hong Kong, China 149,837

Taipei,China 227,000

Republic of Korea 36,699 Saudi Arabia :

Jeddah 530,229

Riyadh 120,219

UEA 35,363

Qatar 38,000

Oman Bahrain 20,118

Yordania 1,900

Suriah 5,276

Kuwait 7,878

Total 2,682,561

TKI Formal : 25.857 Org Domestic Worker : 170 Org

TKI Formal : 412 Org Domestic Worker : 30 Org

TKI Formal : 17.795 Org Domestic Worker : 3.897 Org












TKI Formal : 293 Org Domestic Worker : 3.937 Org










TKI Formal : 797 Org Domestic Worker : 8.931 Org















Placement of IOWs Overseas

Source: MoMT Republic of Indonesia (Tahun 2011 s.d 31 Oktober 2012)

9

10

8

7

6 5

4

3

2

11


12

1 13

14

15


16

17


18

19 TKI Formal : 579 Org Domestic Worker : 3 Org

20

TKI Formal : 471 Org Domestic Worker : 12 Org 21


22

23



25




27

28


29

31

32 33

34

35

36

37


38

39

40


41


42


43


44


45

46


47


48


49

50


51

52

53


54

55

56

57


58 TKI Formal : 124 Org Domestic Worker : 1 Org 59


60


61


62

64

65

66 67



69


70


72

71


73


74


76

Rekapitulasi Data Penempatan Tahun 2011 s/d 31 Oktober 2012

NO. NEGARA PENEMPATAN JUMLAH

TOTAL FORMAL DOMESTIC

WORKER

A. ASIA PASIFIC

1 Malaysia 222,362 20,504 242,866

2 Taipei,China 36,621 109,732 146,353 3 Hong Kong, China 3,991 85,619 89,610 4 Singapore 17,506 64,475 81,981 5 United States of America 25,857 170 26,027 6 Republic of Korea 22,897 160 23,057

7 Brunei Darussalam 17,795 3,897 21,692 8 Japan 5,276 36 5,312 9 People’s Republic of China 2,582 19 2,601 10 Thailand 1,831 18 1,849 11 Fiji Islands 1,348 4 1,352 12 Australia 1,118 9 1,127 13 Maldives 1,103 14 1,117 14 Macao, China 261 697 958 15 India 932 7 939

16 Papua New Guinea 926 6 932 17 Viet Nam 713 10 723 18 New Zealand 594 1 595 19 Peru 579 3 582 20 Timor Leste 548 0 548 21 Russia 471 12 483 22 New Zealand 466 2 468 23 Canada 412 30 442 24 Philippines 339 5 344 25 Sri Lanka 335 4 339 26 Myanmar 301 0 301 27 Lao PDR 208 1 209 28 Papua New Guinea 156 23 179 29 Chile 112 2 114 30 Other 398 13 411

JUMLAH 368,038 285,473 653,511

B. MIDDLE EAST & AFRICA

31 Saudi Arabia 45,082 124,274 169,356

32 United Arab Emirates 11,008 57,099 68,107 33 Qatar 5,419 28,061 33,480 34 Oman 1,331 13,120 14,451 35 Bahrain 797 8,931 9,728 36 Kuwait 1,652 3,063 4,715 37 Syria 293 3,937 4,230 38 South Africa 2,329 12 2,341 39 Turkey 1,969 47 2,016 40 Algeria 1,967 2 1,969 41 Mauritius 1,183 4 1,187 42 Africa 1,089 11 1,100

43 Trinidad and Tobago 952 1 953 44 Uruguay 835 9 844 45 Brazil 832 2 834 46 Nigeria 771 3 774 47 Cyprus 754 17 771 48 Egypt 707 51 758 49 Iraq 338 11 349

50 Democratic Republic of the Congo 324 1

325 51 Angola 274 2 276 52 Mauritania 234 0 234 53 Jordan 60 147 207 54 Senegal 195 0 195 55 Morocco 181 1 182 56 Republic of Seychelles 151 12 163 57 South Yemen 119 11 130 58 Colombia 124 4 128 59 Ghana 124 1 125 60 Tunisia 121 2 123 61 Iran 116 2 118 62 Argentina 101 0 101 63 Other 1,573 62 1,635

JUMLAH 83,005 238,900 321,905 C. EUROPE 64 Italy 6,545 43 6,588 65 Spain 2,914 24 2,938 66 Netherland 1,197 8 1,205 67 Germany 916 9 925 68 UK 1,306 113 1,419 69 Switzerland 803 4 807 70 Portugal 508 2 510 71 France 442 3 445 72 Denmark 296 7 303 73 Malta 259 1 260 74 Greece 203 6 209 75 Other 803 46 849 76 Norway 130 1 131

JUMLAH 16 322 267 16 589

5. Challenges

IOWs Cases, 2014 Nu TYPES OF CASES %

1 Wage Problems 47.50 %

2 Physical Abuses 9.93 %

3 Sexual Harassment 3.99 %

4 Over Loaded Work 10.01 %

5 Negative Behavior of Employer 14.26 %

6 Working Without LC 0.16 %

7 Home Sick 2.35 %

8 Disharmony with Employer 0.39 %

9 Sick 11.41 %

TAHUN TOTAL REMITANSI

2010 6,74

2011 6,73

2012 7,02

2013 7,41

2014 7,73

IOWs Remittances, 2010-2014 (in millions US$)

Source: Central of Indonesia Bank

6. Solutions

Strengthening national legislations and institutional framework.

Improving inter-agency coordination and policy implementation

Enhancing protection efforts by Indonesian Missions abroad.

Thank You

Country Presentation - Indonesia

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